Vicki Bauman

Tax time is here and there are numerous requests for receipts for membership dues. 

The following is a quote of the relevant bulletin no. IT-158R2 entitled “Employees’ Professional Membership Dues.”

REFERENCE: Subparagraph 8(1)(i)(i) (also subsection 8(5))

Application

This bulletin cancels and replaces Interpretation Bulletin IT-158R dated March 13, 1978. Current revisions are designated by vertical lines.

Summary

The purpose of this bulletin is to discuss the circumstances under which an employee may deduct annual professional membership dues in computing the income or loss from an office or employment.

Discussion and Interpretation

1. An employee may deduct annual professional membership dues in computing the income or loss from an office or employment to the extent that they may reasonably be regarded as applicable to that source of income and provided that

(a) they are annual dues (in contrast with entrance fees) necessary to maintain professional status,

(b) the amount claimed is paid in the taxation year and the employee is not reimbursed or entitled to be reimbursed, and

(c) the professional status is recognized by a Canadian, provincial, or foreign statute.

The relevant statement applicable to BC HRMA is (c). BC HRMA professional status is not recognized by a Canadian, provincial or foreign statute. We are not allowed to issue tax receipts for membership or CHRP dues so BC HRMA membership dues are not an allowable tax deduction.

The Canadian Council of Human Resources Associations (CCHRA) and BC HRMA recommend that members contact the CRA to verify allowable tax deductions.